Hsinchu, Taiwan, August 13, 2001 ˇV Sunplus Technology
(Sunplus)(TSE:2401, FTSE:SUPD) and Grandtech Semiconductor
(Grandtech) today announced that they have signed an agreement
to merge Grandtech with and into Sunplus. The merger agreement
was approved today by the boards of directors of both Sunplus
and Grandtech. The exchange ratio for Grandtech to Sunplus
shares will be 2 to 1 respectively. The consolidation date
of the merger is targeted for December 15, 2001, at which
time Grandtech will be absorbed into Sunplus. The merged entity
will operate as Sunplus.

Grandtech, established in June 1997, is a fabless IC company
in image processing products. Currently the leading company
of digital still camera and scanner Ics in Taiwan, Grandtech's
paid-in capital is NT$ 214.8 million. Its major shareholders
is the management team and Lin-Shih Investment Company (with
36 percent invested interest in Grandtech), which is a company
100% held by Sunplus.

Sunplus Chairman Mr. Chou-Che Huang stated, "Sunplus
is aggressively building our core technology through our own
R&D programs and by carefully selecting opportunities
to cooperate with companies that have unique intellectual
property. Through various types of collaborative models -
including mergers and acquisitions, joint ventures and strategic
alliances, we continue to build-up new intellectual properties
for our customersˇ¦ future needs."

Mr. Eric Chen, Grandtech's Chairman, said, "Grandtech
is a relatively new player in the IC industry. Since its establishment
four years ago, Grandtech has built a strong foundation for
future growth as a result of the excellent performance of
its R&D team and marketing force ion digital still camera
and scanner image processors. However, given the growing attraction
of the competitive advantage of being the industry leader,
the synergy of the combined organization should produce more
substantial results than could be achieved by Sunplus or Grandtech
separately."

"Sunplus is not only Taiwanˇ¦s number one consumer IC
company but also a reputable design house recognized around
the world. Grandtech's major shareholders have agreed to support
this merger," continued Mr. Chen. "We believe that
the merger further solidifies Sunplus' leading position in
the consumer electronic industry and is in the best short-
and long-term interests of Grandtech's shareholders."

The major details of the merger agreements are as follows:
1. The contemplated merger shall be implemented by way of
"Absorption". The merged entity will operate as
Sunplus.
2. The consolidation date of this merger is targeted for December
15, 2001.
3. The exchange ratio for Grandtech to Sunplus shares will
be 2 to 1 respectively.
4. The Chairman of the Board, Directors and Supervisors of
Sunplus need not be re-elected as a result of the merger.
5. According to government regulations, the merger is subject
to the approval of regulatory authorities, and shall be carried
out after the stockholders meetings of both companies.

About Sunplus

Sunplus Technology Co., Ltd. (TWSE: 2401, LSE: SUPD),
established in 1990, is a leading chip provider for multimedia and automotive applications such as DVD player,
portable DVD player, home entertainment audio products, car infotainment and advanced driving assistance system(ADAS).
Meanwhile Sunplus is offering high-speed I/O IP, high performance data conversion IP,
and analog IP for a broad range of applications on consumer, portable, and connected devices for Sunplus has been
accumulating strong IP technologies on consumer and multimedia segments.
Sunplus is headquartered in Taiwan and has service offices in Shanghai, Shenzhen and Chengdu. For more information, please
visit Sunplus website at www.sunplus.com.